subject: Very Bad Credit Loans – Funds Despite Past Faults [print this page] When your credit rating has plunged to new lows and there is no hope for a financial assistance, it is advisable to explore the option of very bad credit loan. these types of loans can be an option for the people who made repeated mistakes in the past towards old loans and want to start new in life. You should borrow an amount carefully after going through all aspects of the loan.
Your credit rating falls too low when there are multiple cases of late payments, payment defaults or CCJs that are mentioned in your credit report. Such a borrower is highly risky for the lenders as he or she is likely to repeat the same mistakes again. So, the lenders will first assess your actual repayment capability at present. For this, they will go through your bank statements, monthly expenditures and the monthly outgo for old loans. Then, they will approve an amount that you can easily repay each month for the installments of the new loan.
Very bad credit loans can be availed in secured or unsecured options. The homeowners can easily get the secured loan against their home or any other valuable property. Such a loan will also be beneficial as it is of low interest rate. You can borrow 5000 to 75000, depending on value of the property for collateral. Its repayment can be made in 5 to 25 years.
The unsecured loan is ideal option for tenants or non-homeowners as there is no collateral involved. The loan ranges from 1000 to 25000 for a short-term of one year to 10 years. But interest rate will be little higher.
Very bad credit loans can be availed for home improvements, wedding, education, holiday tours, debt-consolidation, buying a car and so on. Another purpose that can be accomplished is to improve your credit rating as you repay the loan installments in timely manner.
Compare as many offers of very bad credit loans and settle for the one that suits to your repayment capability. Make sure that you repay the loan on the due dates of its installments.
